New Jersey Appoints Mediator as Atlantic City Tries to Avoid Bankruptcy Filing

Former Judge Donald Steckroth to sit in on talks with casino and city unions

New Jersey has tapped former bankruptcy judge Donald Steckroth to mediate talks between struggling Atlantic City and groups expected to play a major part in its looming restructuring, including casino operators and police and firefighters’ unions, according to people familiar with the matter.

The appointment reflects city and state officials’ desire to keep the gambling destination out of bankruptcy as it works to fix its budget crisis. Mr. Steckroth’s role would involve serving as an arbiter during attempts at making deals...